Accenture partners with Palantir for AI solutions, boosting shares despite YTD dip.

In a strategic move, IT major Accenture (ACN) partners with data analytics specialist Palantir (PLTR) to deploy AI solutions for U.S. federal government customers. Despite a 14% YTD dip in ACN stock, the partnership has boosted shares by 2.6% in the past five days, signaling investor interest.

Accenture’s revenue and earnings have grown steadily over the past decade, with a 193% increase in shares. The most recent quarter saw revenues of $17.7 billion, surpassing estimates, and earnings of $3.49 per share. Cash flow from operations increased to $3.68 billion, indicating financial strength.

While new bookings decreased by 6% year-over-year, Accenture is optimistic about Q4 FY 2025 revenues, expecting $17 billion to $17.6 billion. The company is focusing on AI initiatives, training employees to deliver consulting services and developing intelligent systems in partnership with Nvidia to drive growth.

Through strategic alliances and acquisitions, Accenture is enhancing its AI capabilities, aiming to create an AI-enabled workforce. The firm’s diversified service architecture and client base position it as a resilient long-term investment, with analysts giving ACN stock a “Strong Buy” rating and a target price of $349.24, indicating a 15.6% upside potential.

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